Late entry? Don´t get caught on a potentially 3% falling market
Do you consider yourself a conservative trader who requires a lot of confirmation before entering? Pay attention to not enter to late!
Often, waiting for too much confirmation is like attending to an all you can eat lunch at 14h30. You pay full price but there is almost nothing left to eat.
This is such a case. Those traders who position themselves ahead of future price action generated profit already on the first round of french elections and will continue (potentially) on the second round.
Those conservative traders who wait for the result of the elections may go long EUR after Macron´s win (hopefully he will!!) and then Euro falls because the french elections pushed it right into a BatPattern on the weekly chart and there traders will close their long position with a loss. This BatPattern is of course no guarantee for a downtrend in the Euro but those who are trading BatPatterns, especially on EURUSD know that the chances are way above 60% of reaching a 38.2% retracement (here almost 3% down movement).
What I am not saying is that being conservative or having a conservative entry approach is wrong. Instead I want new traders who are thinking about conservative entires to consider how much of the directional potential is already gone.
Often, waiting for too much confirmation is like attending to an all you can eat lunch at 14h30. You pay full price but there is almost nothing left to eat.
This is such a case. Those traders who position themselves ahead of future price action generated profit already on the first round of french elections and will continue (potentially) on the second round.
Those conservative traders who wait for the result of the elections may go long EUR after Macron´s win (hopefully he will!!) and then Euro falls because the french elections pushed it right into a BatPattern on the weekly chart and there traders will close their long position with a loss. This BatPattern is of course no guarantee for a downtrend in the Euro but those who are trading BatPatterns, especially on EURUSD know that the chances are way above 60% of reaching a 38.2% retracement (here almost 3% down movement).
What I am not saying is that being conservative or having a conservative entry approach is wrong. Instead I want new traders who are thinking about conservative entires to consider how much of the directional potential is already gone.